Congress calls PM Modi's gold purchase appeal a 'death warrant'

Congress leader Randeep Surjewala said Prime Minister Narendra Modi's appeal to defer gold purchases is a "death warrant" for the jewellery sector.

The proposal combines a request for citizens to postpone gold buying for one year with a significant increase in import duties. This policy shift threatens the livelihoods of millions of small-scale traders and artisans who rely on steady domestic demand.

Surjewala said the decision to raise the import duty on gold and silver from six percent to 15 percent ^[1]. He said the Prime Minister’s appeal to defer gold purchases, coupled with the decision to raise import duty on gold and silver from six percent to 15 percent, is a death warrant for the jewellery sector ^[1].

Opponents of the measure said the policy will create a severe economic crisis for the industry. Reports indicate that approximately 3.5 crore individuals could be affected by the policy ^[2].

Congress leaders said that discouraging legal gold purchases while increasing duties would not stop demand, and it would instead encourage smuggling. This shift could push the trade into the shadow economy, further harming registered small jewellers who cannot compete with illegal imports.

The jewellery sector remains a cornerstone of the Indian economy, blending cultural tradition with commercial trade. By urging a year-long deferment of purchases, the government seeks to manage economic pressures, but the opposition views the move as a direct attack on the sector's viability.